Small Business Loans Texas

Texas is one of the most competitive states to do business in. The state has the second-largest gross domestic product in the United States, with over 3 million businesses employing 4.9 million workers. 

Only 78.5% of businesses survive their first year in operation, and 33% of business owners attest that lack of capital was the main proponent of them closing their doors for good. 

You don’t necessarily have to run your operation perfectly to earn your spot in the market, but you should know that other businesses are doing everything they can to stay competitive, as you should, too.

At the end of the day, you need money to run a business, and it’s often difficult to manage your capital regardless of what stage your business is in.

However, one key opportunity can help support your business through all its challenges: small business loans. There are a variety of small business loans in Texas that you can use to take your business to the next level, including:

• Term Loans
• SBA Loans
• Business Lines of Credit
• Equipment Financing
• Merchant Cash Advances

Still, your benefits often depend on your ability to secure favorable terms, and you can save time and resources by teaming up with a marketplace of multiple lenders.

National Business Capital, a leading Fintech marketplace of 75+ lenders, is uniquely capable of helping your business secure competitive financing. But, it’s always a good idea to understand what you’re getting yourself into before starting the process. Here is everything you need to know about small business loans in Texas.

Finding a small business loan in Texas might seem easy at a glance, but it’s actually a complicated process characterized by intensive research and keen attention to detail.

Understand Your Business Needs

First, you’ll need to understand your business’s needs, including how much capital you need to borrow, your plan to use the borrowed funds, and your capability to repay the loan within the terms. 

Some business owners choose to forgo this step to secure a small business loan as fast as possible, but you can avoid running into a situation where you’re struggling to repay your financing by taking proactive steps like these.

Look for Lenders

The next step to getting small business loans in Texas is to start comparing lenders.

Once you know the capabilities of your business and the amount you’re seeking to borrow, you can begin looking for lenders. You’ll likely find hundreds of options at your disposal, with each lender offering different programs and terms depending on your business’s financial information. 

Traditional lenders, like banks and credit unions, tend to offer the lowest interest rates of the bunch, but they also carry the strictest eligibility requirements. 

On the other hand, online lenders have less restrictive eligibility guidelines, but they tend to carry higher interest rates compared to other lending organizations. 

Some lenders might review your documentation and determine that your operation is too risky for a loan, whereas another might see no involved risk and offer you favorable terms. 

Compare Lenders

The only way to find the best deal is to review your options for small business loans in Texas, but this takes time and resources, something that not many business owners can afford to waste.

Streamline your search for small business loans in Texas through National Business Capital. Our 75+ lender marketplace gives you something that other lenders cannot: options.

Our experienced team of Business Finance Advisors works with you every step of the way, personalized financing solutions for your business needs and establishing a relationship to help with future financing challenges.

You can apply for different types of small business loans in Texas, from state programs such as BCL, BIG Austin and PeopleFund to loans from banks, financial institutions and alternative lenders including term loans, business lines of credits and SBA loans.

Other than the traditional financing options available to business owners in Texas, there are a few state-specific programs that you can take advantage of, such as:

• Business and Community Lenders (BCL) of Texas: A non-profit organization that provides various financing options, like microloans and SBA loans, to Texas business owners.
• Business Investment Growth Austin (BIG Austin): Micro lender that supports entrepreneurs through smaller loan amounts ($10,000 to $50,000).
• PeopleFund: Another non-profit organization that specializes in helping small business owners grow their businesses. PeopleFund focuses specifically on financing veterans, minorities, and those in low-income communities.
• Texas Trust Credit Union: A credit union that’s provided small business financing to entrepreneurs since 1936.
• Texas Capital Bank: A bank serving industries other lenders wouldn’t typically finance.

Whether you’re in Dallas, Austin, or another community in Texas, you’ll have a few financing options to choose from, including government small business loans or regular business loans. Here are some of the more popular options used by business owners to support their growth:

Term Loans

Term loans are what most entrepreneurs picture when they think of small business loans. This option is given in a one-time lump sum payment that you must repay within the term outlined by your lender. 

Generally, repayment periods for term loans are between two and 25 years, so you can use this option to solve a variety of immediate and long-term business challenges. 

However, you should consider that extended-term loans will likely carry higher interest rates compared to shorter-term financing, especially if you’re dealing with an online or alternative lender.

Term length

Can be short-term or long-term – less than one year or up to 25 years

Interest rates

Starting at the prime rate to 6%

Ideal for

One-off purchases or investments, when you know exactly how much a project will cost, long-term financing needs

Business Line of Credit

Business lines of credit operate similarly to a traditional credit card, but they allow you to draw cash whenever you need it. Most business lines of credit are revolving, meaning that you can draw on the same funds whenever you pay off the borrowed amount. 

This option is uniquely beneficial for any business owner who wants a safety net for unforeseen expenses or situations that arise down the line or for entrepreneurs who need continuous financing to grow their business.

Term length

Revolving

Interest rates

Starting at the prime rate to 6%

Ideal for

Ongoing purchases or investments, flexibility, when you don’t know the exact cost of a project, long-term financing

SBA Loans

Small Business Administration (SBA) loans are one of the most popular options for entrepreneurs. SBA loans feature high borrowing limits, flexible terms, and favorable interest rates compared to other financing options. 

They’re also characterized by loose restrictions on how to use the funds, making this a flexible and beneficial option for any small business, regardless of industry. 

However, the eligibility requirements for SBA loans tend to be strict, and the underwriting process is often lengthy, which may restrict some businesses from reaching approval.

Term length

Can be short-term or long-term – less than one year or up to 25 years

Interest rates

Starting at the prime rate 

Ideal for

Borrowers with good credit

No one said running a business would be easy. Sometimes, you need to explore the opportunities available for you to continue operating at the highest level. 

Some business owners try to stay away from small business loans and financing in Texas because they believe that financing is only used when businesses are in the red. 

But, that couldn’t be further from the truth, as many business owners and entrepreneurs use small business loans to finance their growth, allowing them to achieve their goals and outpace their competition to the best of their ability.

Rather than spend your precious time researching lenders and their programs, you can team up with National and have our team do the heavy lifting for you. 

Our experienced Business Finance Advisors take the time to learn about you, your business, and the challenges you face to find best-fit financing solutions to promote your growth. 

We’re there for you before, during, and after the deal, allowing you to focus on what matters most—your business.

Ready to start looking for small business loans in Texas? Complete our streamlined, digital application in minutes and take the first steps toward taking your business to the next level.